Impact of Innovation on

Consumer’s Behaviour: A case study of

Electronic Industry

PEL

By: Jawwad Hassan Jaskani

Introduction:

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. PEL is a

highly innovative, customer driven, leading Engineering organization of Pakistan involved in the

manufacturing of Power & Distribution Transformers, Medium and Low Voltage Switchgears

and construction of High Voltage & EHV Substations as well as a wide range of Domestic

Appliances with in-house design and development facilities in the Appliances Division.

Since its inception, the company has always been contributing towards the advancement and

development of the engineering sector in Pakistan by introducing a range of quality electrical

equipments and home appliances and by producing hundreds of engineers, skilled workers and

technicians through its apprenticeship schemes and training programmes.

AIMS & OBJECTIVES

VISION

To Excel in providing engineering goods and services through continuous improvement.

MISSION

To Provide quality products and services to the complete satisfaction of our customers and

maximize returns for all stake holders through optimal use of resources.

To promote good governance ,corporate values ,and safe working environment with strong sense

of social responsibility.
Innovation and its impact on consumers

Innovation is seen as an result of a accident between technological changes and customer needs.

The concentrate is upon the connections between manufacturers and customers of innovation.

One result of the research is a more genuine knowing of marketplaces and straight incorporation

than the ones provided by neoclassical financial aspects and deal financial aspects. Another

result is the conceptualization of nationwide innovation techniques as an combination framework

for procedures of entertaining studying at the micro-level. Together these ideas go beyond the

neo-classical stars of companies and customers and point to the need to take into consideration

financial framework, organizations and guidelines for studying (Lundvall, 1988).

Innovation is a unsafe business. Commercial R&D often is not able to achieve innovation. The

innovation goals also can benefit from a variety of information resources that provide the

opportunity for technical advancement (Klevorick et al., 1995). A higher variety of information

resources may help companies to enhance their possibility of successful innovation. Thus still

growing enhancements could be mainly opposed (Ram 1987; 1989). The implementing process

can set up merely following this primary level of resistance has been overcome (Ram 1987;

Bagozzi& Lee 1999). Promoters can take up different techniques to overcome or as a minimum

level of resistance and thus fast up the implementing (e.g. Ram &Sheth 1989). The higher choice

is inspired by you will of these highly impressive individuals since they are more extreme

(Foxall and Haskins, 1986; Kirton, 1976) and have more beneficial behaviour toward change

(Rogers, 1995).

The majority of time innovation level of resistance happens passively. Customers avoid

innovation unique of deliberately enabling for approval for enhancements. Literary works
differentiates numerous pushes of this inactive level of resistance towards enhancements. At

first, inactive level of resistance could be a result of actions (Bagozzi and Lee 1999). Sheth

(1981, p.275) terms routines “the single most highly effective determinant in producing level of

resistance.” A unique human tendency is to effort for consistency and status quo, relatively than

to agree to new actions (Chernev 2004; Gourville 2005). As far as the electronic industry is

concerned, the innovation is favoured for most of the time.

Innovation in PEL

PEL’s focus is on developing up the abilities in item technological innovation, design

advancement, obtaining know-how, providing functional and cost effectiveness and upgrading a

reliable understanding and developing up our certification, social media and developing

consortia with international technology management. The goal is to prepare ourselves in the

stage being set where massive investment strategies have to be made in developing power

generation, transmitting and submission systems regionally as well as in other regional areas.

Their product mix is most powerful than ever, the advancement direction is growing and the

brand is successful at the various places.

 Exhibit 1: Performance of PEL

Exhibit 1 shows that Annual Performance of the PEL, that since 2006 to 2010 the sale was

increasing at a higher rate. There was a decline in 2011 but again rising trend has been in 2012.

So the innovation is supported by the consumer behavior of purchasing the items as they are

according to their need and fulfilling the demand.

Exhibit 2: Market Share Analysis

As far as Market Share is concerned (Exhibit 2) PEL has a constantly rising market share due to

the continuous development of the innovative products. When the products are developed or

reformed then the consumer behavior towards the products as well as the company is positive.
 Exhibit 3: Market Situation

Conclusion:

PEL is the leading player in domestic home appliance market. Over the past five years the

company has made impressive progress in increasing market share and product range through

exciting media campaigns, product innovation and strong distribution channels. Riding the wave

of innovation, PEL has developed a range that made it possible to equip a home with a very

latest products which are technologically superior and economically affordable. Keeping in view

the changing lifestyle of consumers, it made various products and the result is customers have a

positive attitude towards the company as well as the products.